Towerstream Closes On $35M Debt Financing With Melody Capital

Towerstream Corporation

, a leading 4G and Small Cell Rooftop Tower company, announced the closing of a $35 million debt capital transaction with affiliates of Melody Capital Partners, LP ("Melody") a New York City based private investment firm and one of the largest independent owners of wireless cellular sites in the United States. "We are excited to enter into this new partnership with a tower centric investment firm which shares a common focus on Wireless Infrastructure," stated Jeff Thompson, Chief Executive Officer and President of Towerstream. "We believe that the densification of wireless networks is a major priority of communications providers. Our strategic relationship with Melody, one of the largest independent owners of wireless infrastructure locations in the U.S., will enable us to jointly offer our combined locations to carriers, MVNOs, cable companies and others as they upgrade their networks through deployment of Wi-Fi and Small Cell solutions. We will have access to Melody's existing rooftop assets to expand our current network and launch new markets. We will also work together to acquire new rooftop tower assets that we can jointly develop," added Mr. Thompson. "Towerstream is recognized as the leader in offering fixed wireless services and a pioneer in developing wireless infrastructure solutions in the largest cities in the U.S.," said Omar Jaffrey, Managing Partner of Melody. "At Melody, we understand the powerful impact that growing data consumption continues to have on the telecommunications industry, especially in the world of mobile communications. Towerstream has a market leading platform that is positioned to grow in both Fixed Wireless Enterprise solutions and Wi-Fi and Small Cell solutions through its Hetnets subsidiary. We are excited by this new partnership and look forward to a long term relationship with Towerstream and its existing stakeholders," added Mr. Jaffrey. "This transaction strengthens our financial position while avoiding significant dilution to our existing shareholders," stated Joseph Hernon, Chief Financial Officer of Towerstream. "The loan terms provide the latitude required to accomplish the strategic growth objectives of both our Fixed Wireless and Hetnets businesses." The debt matures in full on October 16, 2019 and bears interest at 12% annually, of which 8% is payable in cash on a quarterly basis and 4% is deferred until maturity. In connection with the loan, Towerstream will issue 3,600,000 warrants to purchase common stock with one-third of the warrants exercisable at $0.01 and two-thirds exercisable at $1.26.